Table of contents
Problem statement & solution of the problem
Benefits of going online
Need Analysis based on lifestyles and buying patterns
Barriers & solution
Technology & Innovation
About the industry & profitability
Target audience & the right customer
How the products are differentiated from others
In the time of globalization, the world has become a global village so big brands are operating in multiple nations. Although globalization has been advantageous for businesses on the contrary it has imposed some challenges on them as well. One of the biggest challenges is "to think out of the box" which suggests that businesses should have something unrepeated and distinctive. Now being distinctive could be anything whether it is the marketing tactics or the pricing strategies. Thus, there is an extensive pressure for being different or unique within the industry. Brands are not only expanding their wings and businesses but it also helps in winning economies of scale & financial aids. Based on the brand’s KPIs, financial data, customer satisfaction level, and recent studies on the respective brands the analysis is going to be conducted (Kang, 2004).
However, the online grocery market, there are numerous challenges which are faced by marketers or businesses. Below are some challenges mentioned:
Though there are numerous challenges in online business, still there are some loopholes where the e-retailer can take advantage. To save delivery cost and warehouse cost, maximizing the profit margins & meeting the challenge consumer’s convention of shopping; Meteoric grocery store can have a direct contract with the manufacturing units of the products or with FMCGs companies of buying goods in bulk, this will lead to reducing huge cost.
The meteoric grocery store is going online but with the cost-saving strategy since the store will be having a contract with the “local Small retail store” which is situated in the respective locality. Having a contract will provide several benefits of Meteoric Grocery Store, such as:
Grocery product is demanded from poor to rich, babies to old aged persons, and basics to exotic. But providing the products at the low prices may stimulate to buy more. Grocery product is one of the categories which is needed for anyone and demanded by everyone. (Kang, 2004).
Meteoric grocery store can segment its targeted customers on all basic four factors which are demographic, behavioural, geographic and psychological factors. (Kang, 2004).
Since Meteoric Grocery store will not be doing business in a typical chain which is usually existed in the current time while Meteoric would be having a contract with the FMCGs companies, to minimize maximum cost so that it may lead to less price. Offering the same products at a low price which is present in the market with high value will lead no barrier for entry (Emma, 2014).
Though Meteoric would be using e-platform for business meanwhile there will be less costly because of the contract with the “Small retail stores” where small retail stores will bear warehouse cost. All in all the pricing strategy of Meteoric is an innovation in its business plan. Since it will acquire the market by just a contract (Emma, 2014).
In this contemporary era grocery business is carried out on a margin of a maximum of 3% only & meanwhile it depends on the product as well. Grocery stores make money on their volume of sale (Emma, 2014).
Grocery products are the basic necessity for any person since it is demanded by everyone, it depends on what and how much. To fulfil the basic necessity of an individual’s several competitors exist in the market. Amazon pantry, Flipkart, Big Basket, Grofers are few of the big giants in the metropolitan cities. (Donna, 2014)
They are four kinds of segmentation that are done based on demographic, geographic, behavioural, psychological factors. (Donna, 2014)
Targeting an audience for grocery can further count under the below categories:
Since the marketing mix has primarily four components. The mix is a foundation of any business model. Such components are product, price, place, and promotion.
It simply means the products which are offered in the market to the buyer. It is foremost to have the best features in the product offered.
Price is the numeric value or it is the cost of product plus profit at which the product is offered to the buyers. However, price relies on below five factors.
There are 5Cs of pricing
This is the crucial element of pricing decisions; no brand can fix the price of a product or service without knowing the cost of the same.
Pricing of a product also relies upon the customer’s paying capacity and eagerness or willingness to buy the product.
Channel of distribution
If a brand sells through middlemen, to get to the customers of the products or services, those intermediaries directly affect the prices of a product.
Competition for a particular product highly affects the pricing strategy of the same product, for some brands, competitors are big affecting factors if it is about the pricing. So it’s very important to set the unique price of the product for a customer.
Pricing is not a stand-alone decision; however, it should work in concert with everything else, which the brand tries to attain.
But according to me focusing on competitor’s price is very important these days, it is the biggest threat in this current era since new entrants enter the market very easily reason being there is no such barrier, coming onto the market and setting the foot is very cost-effective.
Moreover, Meteoric Grocery Store should focus on a competitive pricing strategy, where it should primarily consider the margins and profits of the product thoroughly. (Cassel, Ian, 2014)
Engaging middlemen in the distribution of the product may highly affect the price of a product, while retail distribution is the most traditional form of distribution channel. The common model consists of the manufacturer using different intermediaries such as wholesalers or distributors to deliver products directly to retailers, then ultimately to the end-user of a product. This model delays delivery to the consumer and inclines consumer cost as each participant in the distribution channel must take possession of the product and receives a commission or say compensation for its role in distribution. Meteoric Grocery Store has chosen to eliminate distributors to decrease product delivery time and decrease the cost to the consumer since the wholesaler often uses a distributor or other smaller wholesaler as an intermediary to deliver products, or it may offer products directly to retailers or consumers. The scope of the manufacturer's relationship with the wholesaler can have varying effects on product delivery time and price. (Cassel, Ian, 2014)
The social media marketing strategy will certainly lead to meet objectives or goals of Meteoric Grocery Store since the individual who purchases based on inner personalities & features. For example, interest & lifestyle. It may lead to incline in sales volume, margins on a product, & net profit of Levis.
However social media marketing strategy may lead to driving traffic to the website, helps in generating new leads, helps in boosting brand engagement, build up a community around the business, increase brand awareness. (Cassel, Ian, 2014)
It has no. benefits too. Such are mentioned below:
However, the deep analysis of the marketing mix can lead Meteoric Grocery Store to do wonders in the present.
Since the proper study of the above factors will certainly lead to attaining the aims of the Meteoric Grocery Store.
Thomasson, Emma. (2014) "Online grocery sales to double in key European markets by 2016: IGD". Reuters.
Xie, Kang (2004). A Strategic Analysis of Online Grocery and Its Future Outlook.
Tam, Donna. (2014) "Peapod who? Online grocer shows Amazon, Walmart how it's done".
Cassel, Ian. (2014) "The Food Tech Revolution". Seeking Alpha.
"Online grocery growth tests U.S. retail agility". The City Wire. (2014)
"Annual real food price indices". Food and Agriculture Organization of the United Nations. (March 2014)
Jenkins, Nancy (April 2004). "Health Food and the Change in Eating Habits". The New York Times.
"Food prices rising across the world", CNN. (March 2008)
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